Financial Markets Fell to New Lows:
The bad news ripped through Wall Street sending the Dow diving 281 points yesterday and finally bringing technology stocks to their knees before Presidenta Obama. NASDAQ was the last major index to hit a new low.
The cash flow out of the US equities markets Thursday was high again. At this time we have no indication of when the market could form a new bottom but economists are now saying the administration action is causing damage that could take five years to unwind. Obama continues trashing the American free market and capitalist system. It is quite possible that the economy will slide lower until Americans throw the socialists out of Congress in 2011.
The financial markets are now realizing the Obama administration is incompetent and the market has begun discounting a 9% drop in all corporate earnings for each year Obama has the power to destroy American banking and spread socialist chaos. That leads to the expectation that the market bottom will be about 40% lower than we were yesterday. That would be an S&P of about 400, a DJI of about 4100, and a NASDAQ of about 800. You can buy a bank share today for the fee it costs you to withdraw money from that bank at an ATM machine.
Asian stocks were down last night with Shanghai down 1.26%, Japan down 3.5%, India up about 1.5%, and Hong Kong was down about 2.4%.
Yesterday European markets were down 3% to 5% but are doing much better today and are only down in the range between 0.5% to 1.0% at this time.
American market futures are currently down slightly (0.5%) two hours before the market opens.
Capitol Hill reeks with decay:
There is not enough air in the room with Obama punishing achievers who pay taxes and robbing them to create a bankrupt European type cradle to grave welfare system. The Obama administration is now seriously talking of having the senior bondholders sharing in the losses of common and recently preferred stock holders to punish them for trying to preserve their wealth. It is just at the talking stage but bonds are no longer immune to Obama's destruction and chaos. That could bankrupt even the most conservative pension plans. With the Obama administration, going green is coming to refer to the color of the national decay he is creating.
'Substantial doubts' came to light about struggling GM's ability to continue operations. Democrat Congressman Barney Frank says Congress is starting to suffer fatigue from the auto bailout effort and they are thinking about pulling out and letting GM and Chrysler fail after throwing tens of billions at the auto unions. The unions caused the failures and Democrat-Socialist Congress is ready to kill the auto companies but have Democrat Socialist Amerika pick up and pay the obscene auto union pensions so they can keep the union vote and get re-elected.
Obama's mess at AIG continues to fester after multiple failed bailed-outs and it remains in the news all the time. During the 1989-91 bank crisis when 2000 American banks were dissolved quickly and uneventfully there were hundreds of people in the treasury department staff working on the problem. Geithner can't find any competent economists to work with him on Obama's nationalization program.
Angry gay socialist activists are now in court in California to try to overturn the California referendum that overturned lower court rulings that were pressuring churches to bless same sex marriages or have their pastors slandered as bigots or even sued for so-called hate crimes. The activists have already published their blacklist for Ron Emanuel's White House hiring. Ron Emanuel's narcissistic attention to his eye makeup and fluffy wet hair style continues to distract Americans who would like him to focus more on the economy than his pretty face and to hire based on competency without regard to sexual orientation. Is it any wonder that the Obama administration can't find qualified people for the Treasury Department?
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